However, increased output meant lower prices which increased demand which in turn required more employees. There was absolutely no way of standardizing workplace rules and the only motivation of the employees was job security. On the upside, there are tons of things that machines aren’t capable of doing, making humans indispensable assets. In addition, since they knew they were being monitored, they were more motivated to perform on a higher level. Thus the organization comprises a unified singular system made up of these subsystems. Humans are most healthy and functional when all aspects of their being are working together effectively. Unlike today’s interpretation of the word, Weber believed that bureaucracy meant carefully developing and spelling out company objectives and divisions of labor. Chaos Theory and the Butterfly Effect in Crisis Management In response to the classical management approach, human relations management theory was born. Complexity theory and organizations, also called complexity strategy or complex adaptive organizations, is the use of the study of complexity systems in the field of strategic management and organizational studies. Theories help us understand our experiences by using research and observable facts. It was through this revelation that people began to study the behavior of organizations at multiple levels; individual, group, and whole organization. In practice, managers are required to evaluate patterns and events in their companies so as to determine the best management approach. There are three different types of organizational theory to predict and explain the process and also behavior patterns in an organizational setting: Classical Organization Theory, Neo-Classical Organizational Theory, and Modern Organizational Theory. In addition, many management theories have developed since the end of the industrial revolution as society continues to evolve. While the next section will get into the nitty-gritty behind the history of different types of management theory, it is important to have a basic understanding as to why management theory was such an important and ground-breaking idea. In this page, we are going to explore six different management theories, all of which helped to form the base of management as it is known today. Theory Y is focused on the idea of team versus independent work. CC licensed content, Specific attribution, Organizational Behavior / Human Relations, https://pixabay.com/photos/office-business-paperwork-document-3295556/, Describe the history of management theory, Differentiate among Scientific, Administrative, and Bureaucratic Management Theories, Differentiate among Human Relations, General, and X&Y Management Theories, Describe the relationship between management theory and organizational behavior, McCann, Leo. Theory Y, on the other hand, holds an optimistic opinion of employees. Leadership theories are schools of thought brought forward to explain how and why certain individuals become leaders. Organizational theories are the foundation of most organizations classical management theory is based on the theories of Max Weber, Henri Fayol and Frederic Taylor. In this article, we will explore the Classical Organizational Theory. The strategy was a bit different from how businesses were conducted beforehand. Initially, a factory executive enjoyed minimal, if any, contact with his employees. The first category known as Theory X explains that managers have a negative view of their employees and believe that employees need to be forced or coaxed into working. The systems management theory proposes that businesses, like the human body, consists of multiple components that work harmoniously so that the larger system can function optimally. 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